Key Points
- Ethereum is showing strong bullish support and anticipates a breakout to $4K, potentially reaching $6K.
- Despite bullish prospects, Ethereum ETF outflows and resistance levels present short-term challenges.
The crypto market’s liquidation has cooled down to $312 million, and a bullish recovery is evident as the total crypto market cap, excluding Bitcoin, has rebounded to $1.41 trillion. Ethereum (ETH) plays a significant role in this index, revealing robust bullish support at lower levels.
The Ethereum price has regained the $3,200 level, and current market analysis suggests a potential reversal. The question is whether this reversal will reach the crucial $4,000 resistance.
Institutional Interest and Historical Trends
Trump’s World Liberty Financial recently acquired another batch of Ethereum tokens. The financial fund purchased 3,247 ETH tokens for $10 million, increasing WLF’s ETH holding to 78,722.84 ETH, worth nearly $257 million at the current market price.
Ted Pillow, a crypto investor, recently shared a bullish insight into the Ethereum price trend, suggesting Ethereum is following a similar price path to Q4 2020. He anticipates a parabolic rise in Ethereum due to similarities in market conditions such as a massive surge in Bitcoin, the DeFi hype, and increased liquidations.
Despite the strong chances of a bullish recovery, the short-term institutional support is taking a hit. The daily net flow of the nine US Ethereum spot ETFs recorded an outflow of $136.25 million. Leading the offloading move, Grayscale’s mini Ethereum trust sold $84.24 million worth of ETH.
Technical Analysis and Key Levels
The ETH price trend reveals a falling wedge pattern on the 4-hour chart. However, the crucial support at the $3,000 psychological mark assists in an early reversal. This suggests a potential double-bottom reversal from this psychological mark.
The neckline of the bullish pattern remains at the 38.20% Fibonacci level at $3,437. To reach the neckline, the ETH must face two critical resistances: the 23.60% Fibonacci level at $3,278 and the local resistance trend line.
If the ETH price reaches the neckline, the price action will mark a bullish breakout of a falling wedge pattern. This will significantly increase the upside chances in ETH to reach the 61.80% Fibonacci level at $3,693.
On the other hand, the psychological support at $3,000 remains solid and may continue to absorb the incoming supply waves. Ethereum’s bullish recovery signals a potential breakout, with historical trends and institutional moves aligning for a possible parabolic rise. However, ETF outflows and resistance levels could present short-term challenges, requiring close attention to key levels at $3437 and $3693 for sustained upside momentum.
